Bitcoin (BTC), which lost momentum after the Fed monetary policy and the Russia-Ukraine war, is showing signs of recovery again. As of the time of writing, BTC is trading at $ 42,006 with an increase of 8 percent.
While the Bitcoin price has dropped below $40,000 several times, a prominent cryptocurrency community has stated that BTC will trade close to $50,000 by the end of March.
The CoinMarketCap crypto community believes that BTC will reach $48,145 by March 31, an increase of over 23 percent from the current price. 83,489 members on the platform voted in this direction. 53,098 community members predicted that BTC would hit $48,985 by the end of April. This figure represents an increase of almost 26 percent from the current value. However, 34,044 community members believe that by the end of March, Bitcoin will be traded at $46,958. The crypto community has an 82 percent historical accuracy rate in its Bitcoin price predictions.
The prediction comes out after Bitcoin entered March above $40,000. However, BTC price action is still associated with struggling stocks and the first week of March was pretty volatile. While the community remains optimistic about the future of Bitcoin, there are concerns among investors about the next trajectory of the asset. For example, as of March 8, the Bitcoin fear and greed index reached 21. These levels usually mean “extreme fear” in the market, it can mean that investors can be very worried and the market may see a rebound.
Overall, Bitcoin and the overall crypto market, particularly as President of the United States Joe Biden expects to sign an executive order later this week, impending regulatory concern remains a dominant factor in the price. The executive will present a roadmap to the government on cryptocurrencies. The rest of the month will continue to test Bitcoin as an inflation hedge. Bitcoin reacted negatively to the Federal Reserve's increasing efforts to combat inflation and lost value.
In particular, Bitcoin, which remains extremely volatile, has also been negatively affected by the ongoing Russia's Ukraine war. Investors turned away from risky assets and made big sales. Therefore, the next course of the war will likely play a role in Bitcoin's price action.